Shauwn Mkhize's Royal AM ordered to repay R27 million sponsorship
The judgment comes just weeks after the municipality moved to cancel the three-year sponsorship agreement, which had sparked public outrage.
The football club is owned by Durban businesswoman Shauwn Mkhize and her son, Andile Mpisane.
Local ratepayers and civil society groups, who have long opposed the deal, have welcomed the court's decision as a victory for transparency and accountability.
'We've been against the sponsorship from the start,' said Anthony Waldhausen, CEO of the Msunduzi Association of Residents, Ratepayers and Civics (MARRC).
'Now, we're looking forward to the municipality taking steps to recover the money owed. That funding should be redirected to urgently needed service delivery.'
The sponsorship was originally pitched as a strategic investment in sports development and brand exposure.
However, critics slammed it as irresponsible spending in a municipality grappling with service delivery challenges and financial strain.
Calls have also intensified to broaden the investigation into the origins and motivations behind the deal, with demands for greater oversight of municipal finances.
The court's ruling now compels the Msunduzi Municipality to initiate processes to recover the full R27 million from Royal AM.
It remains to be seen whether the club will comply voluntarily or if further legal action will be required.
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